Question
Credit terms =Net 30. Gross sales =$1,000,000 80% pay on Day 30. 20% pay on Day 40. Bad debt losses =2% of gross sales. Operating
Credit terms =Net 30. Gross sales =$1,000,000 80% pay on Day 30. 20% pay on Day 40. Bad debt losses =2% of gross sales.
Operating cost ratio =75%.
Cost of carrying receivables =12%.
If the tax rate is 30%, how much is the net income?
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International Finance
Authors: Keith Pilbeam
3rd Edition
1403948372, 978-1403948373
